Archive for June, 2010

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    • Stock Market Analysis: US Markets Lower; ASX to open lower

    Tuesday, June 22nd, 2010

    U.S. Markets Lower on Chinese currency revaluation; Gold Lower; ASX to Open Lower

    U.S. stocks saw selling after early gains could not be sustained.   The key driver was the news that China will be relaxing its Yuan Peg to the US dollar, which was initially seen as a positive,
    however the fact there was little detail given about how the revaluation of the Yuan will unfold, sent nervous investors to the sidelines. Our market is likely to trade lower with negative lead from the U.S. Expect to see some profit taking ahead of the month end.

    The SPI Futures is above the key level of 4500 the ASX is set to open lower as the SPI closed down 30 points (or 0.7%) at 4,569.   Key levels this week are 4450 and 4650. Expect our market to trade lower today with gold stocks again in focus as the precious metal reaches record highs, Gold stocks see profit taking.

    US Markets

    In the U.S. the retailers were the biggest drag with the sector down 1.7 per cent over concerns that the yuan revaluation will increase their cost of goods, all 30 stocks in the retailing index fell.  The tech heavy Nasdaq index also retreated with a possible key day reversal overnight. There were some positives with the credit card businesses, Visa and Mastercard jumped 5% as financial regulation changes were not as onerous as first feared.  The Dow down 8 points, or 0.1 per cent, to 10,442, while in the broader market the S&P 500 index lost 4 points, or 0.4 per cent, to 1,113, and the tech-heavy Nasdaq ended 0.9 per cent lower at 2,289.

    European Markets

    European shares generally rose overnight, with miners in the lead BHP was up 4.7 % and RIO up 5% in London.  In the U.K. the London FTSE 100 index added 48 points, or 0.92 per cent, to 5,299 points. The German DAX gained 76 points, or 1.2 per cent, to 6,292 points, while in France, the CAC 40 rose 50 points, or 1.3 per cent, to 3,736 points.

    China has made a move on its currency ahead of this weeks’ G20 meeting, by announcing it will be removing its two year yuan peg to the US dollar, not in a one-off revaluation but the currency will be appreciated in an orderly manner.  This is potentially good news for our miners because a strengthening in Chinese currency will make our resources cheaper.

    Asian Markets

    The Chinese revaluation news sparked a jump in Asian markets yesterday.  In Japan the Nikkei index of the Tokyo Stock Exchange jumped 2.5% to end at 10,238. The benchmark Hang Seng Index was up 3.1% at 20,912, and China jumped up 2.9% at 2586.

    Oil prices finished the week above US$77 a barrel overnight as U.S. The benchmark crude NYMEX for July delivery up US$0.64  to settle at US$77.82 a barrel. Copper prices finished down again but remains around the critical $US3.00 a pound. Copper for July delivery up 5.8 cents to settle at $US2.942 a pound. Gold closed below record levels falling the most in a month, with August gold fell  $US17.60 to settle at $US1,240.70 an ounce.

    Key News Drivers Today

    G20 – meeting to be held in Toronto this week.

    YUAN – China to end its two-year yuan peg to the US dollar. China has signaled a “more flexible yuan” currency policy, which will allow its currency appreciate in an orderly manner against the US dollar.

    The yuan has been pegged at 6.83 against the US dollar since mid-2008.  It will not be a one-off revaluation.

    US – reacts to Chinese currency revaluation

    Markets Overview

    U.S. Markets Off Their Highs; Gold Pulls Back

    SP500: down 0.4% at 1,113 – Above 200 day Moving Average
    DOW down 0.1% at 10,442 – Above 10,000
    NASDAQ: down 0.9% at 2,289

    Dollar Index: bounce at 85.25 on Higher Euro
    A$ higher at 87.96

    FTSE: flat at 5,250 – Financials Weigh
    DAX down 0.1% at 6,217 – Still in Outperforming�

    CHINA: up 2.9% at 2,586 – Currency Allowed to Revalue
    HSI  up 3.2% at 20,912

    Oil: up 0.5% ($77.82)

    Gold: down 1.5% at ($1,240.70)
    Commodities Mixed

    SPI: Above key Level 4500 ASX
    SPI down 0.7% at 4,569

    ASX News

    The SPI Futures is above the key level of 4500 the ASX is set to open lower as the SPI closed down 30 points (or 0.7%) at 4,569. Key levels this week are 4450 and 4650. Expect our market to trade lower today with gold stocks again in focus as the prescious metals reaches record highs, Gold stocks see profit taking.

    AUD – lower at 87.75

    AGO – Atlas Iron rose after the company said it had begun mining at its second mine and was on track to quadruple exports by the end of this calendar year.

    AMC – faces $466 million law suit in class action seeking damages over the pricing fixing cardboard box cartel.

    BHP – S&P Equity Research has downgraded BHP’s target to reflect the RSPT impact, citind estimated lower EPS around 15% due to the RSPT. They went on to say the tax has a 50% chance of being approved.

    FMG – Fortescue is poised to sign an agreement with a Chinese engineering group for works to boost iron ore production at its Chichester Hub operations in WA.

    GCL – Gloucester Coal independent directors have recommended the miner’s shareholders accept a $1 billion takeover bid by Singapore’s Noble Group Ltd.

    MTE – MetroCoal has upgraded the inferred resource at its Bundi thermal coal deposit in the Surat Basin in Queensland by 500 percent.

    NAB – NZ’s Commerce Commission has given AMP regulatory approval to acquire the Australasian operations of AXA Asia Pacific Holdings.

    ORI – board has approved a $75 million investment to help expand its ammonium nitrate plant in Newcastle.

    RIO – BHP Billiton and Rio Tinto have reached an agreement with the WA government for iron ore royalties that brings them in line with other producers.

    SDL – Sundance  missing executives has been found dead in aircraft crash.

    TLS – again in spotlight as it is to receive $11 billion from the government in exchange for sharing its infrastructure with the NBN and migrating customers to the new fibre network.  This is obviously a huge step in resolving issues between the government and Telstra re the NBN rollout.

    Economic Reports out today:

    Committee for Economic Development of Australia – two-day conference

    AGMs -  Trust Company; Extract Resources; CBio

    Market volatility will continue near term, some speculative accumulation is underway.

    We the suggest trading strategy is to tighten stops. Be prepared to take profits and open/hold short positions, remember we are trading into the end of the financial year.

    Market Summary

    ASX – to open lower
    US & UK/Europe – US lower, Europe Higher
    US ADRs - Mixed!!!…

    BHP up 2.3% & RIO up 2.5%; AWC up 3.6%
    ANZ up 0.6% & NAB up 1.3%
    NEM down 2.9%, JHX down 0.6%, NWS down 1.3%

    Commodities Stock Index up 0.2%
    Gold Stocks Index down 2.6%
    Oil Stocks Index down 0.6%

    By Michael Hevern
    Head of Research

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    Share Purchase Plan: GUD Holdings

    Tuesday, June 22nd, 2010

    GUD Holdings announced on the 21/6/2010 that they would be conducting a Share Purchase Plan to raise additional capital.  The record date was the 18/6/2010 on which shareholders must own the share to participate in the SPP. The closing date is 21/7/2010. Shares will be issued on 30/7/2010 and begin trading on 3/8/2010.   A maximum of $15,000 can be purchased by each shareholder at $8.30 or a 2.5% discount to volume weighted average price, VWAP.

    Discount : 4.0% Liquidity : Good Profitability : Good Stability : Good

    www.gud.com.au

    * Note: Discount is based on the closing price on the 21 June 2010.

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    Aquila Resources Gains Access To China Development Bank Funding

    Tuesday, June 22nd, 2010

    Aquila Resources Limited (AQA) is pleased to announce that it has executed a Memorandum of Understanding with China Development Bank Corporation, a major Chinese financial institution, which provides project financing and financial services to companies in China. China Development Bank was founded in 1994 and operates under the direct jurisdiction of the State Council. China Development Bank has been a major participant in the long-term financing for key infrastructure and other projects vital to the development of the Chinese economy, and has over the last decade, issued loans totalling more than 1.6 trillion yuan to fund over 4,000 development projects. China Development Bank is a strategic partner of Baosteel Group Corporation. Baosteel holds a 15% stake in Aquila, and both Aquila and Baosteel are parties to a Memorandum of Strategic Cooperation entered into in August of last year.

    This MoU provides a broad framework pursuant to which, China Development Bank and Aquila will explore mutual opportunities to facilitate Aquila’s development, as well as enable China Development

    Bank to support Baosteel through its investment in Aquila, to expand its business in Australia. The intent of the MoU is also to assist China Development Bank to expand its business in Australia. The principles of cooperation, provided for in the MoU, are based in equality and mutual benefit and provide support for projects that are consistent with the economic development plans and bilateral diplomatic and trade development strategies between China and Australia. As Aquila’s projects are predominantly in steel raw materials, they are clearly seen as important from the perspective of China’s rapidly growing steel industry.

    Aquila’s interests in projects include, but are not limited to Isaac Plains Coal Mine; Eagle Downs Hard Coking Coal Project; Washpool Hard Coking Coal Project; and West Pilbara Iron Ore Project. Opportunities include mutually beneficial arrangements for project financing and financial services, and provide that China Development Bank will actively support Aquila both in Australia and China, in the investment in and financing of Aquila’s various projects. The parties will meet regularly to review the MoU and to identify additional opportunities for cooperation. In addition, potential personnel exchanges in fields relevant to the activities of each of Aquila and China Development Bank will be pursued. This MoU provides further opportunity for Aquila to enhance its business connections with the rapidly growing Chinese economy, and to increase the Company’s profile in China, as Aquila continues to aggressively pursue its growth strategy both in Australia and overseas.

    www.aquilaresources.com.au

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    ASX Company News: BHP Billiton Finalises Royalty Agreement With WA Government

    Tuesday, June 22nd, 2010

    BHP Billiton today announced that it had signed a non-binding Heads of Agreement with the Government of Western Australia to amend Iron Ore royalty rates payable to the State effective 1 July 2010.

    Based on this agreement, the State will proceed with amendments to the State Agreement Acts covering operations managed by BHP Billiton, to require payment of royalties on iron ore shipments at the rates specified in the WA Mining Regulations. Royalty rates will increase from 3.75 per cent of sales revenue to 5.625 per cent for Fines and from 3.25 per cent to 5.0 per cent for Beneficiated Ore. The Lump royalty will be 7.5 per cent, which is already the prevailing rate for most of the Lump ore produced from projects managed by BHP Billiton. The rates as amended will apply to all existing operations and future projects covered by the State Agreements.

    Additionally, BHP Billiton and the Government of Western Australia have agreed to make amendments to various State Agreements to: permit sharing of infrastructure and blending of products across the networks operated by BHP Billiton and Rio Tinto; and modernise other provisions of the State Agreements.   These changes to the State Agreements will enable BHP Billiton’s existing iron ore operations to operate more efficiently. They will also help facilitate the proposed West Australian Iron Ore Production Joint Venture between BHP Billiton and Rio Tinto, which is still subject to approval from regulators and shareholders.   While the State Agreement modifications relating to infrastructure and modernisation are not conditional upon the finalisation of the Production Joint Venture, the resulting flexibility to blend product and share infrastructure would facilitate the capture of synergies which are the main driver for the Production Joint Venture proposal.

    The proposed removal of historical royalty concessions has been subject to discussions with the State Government for some time. In recognition of this, and as a way of sharing the value that the variations to the State Agreements are expected to generate, the parties to the relevant State Agreements will make a contribution totalling A$350 million to the consolidated revenue of the State.

    Marcus Randolph, Chief Executive Ferrous and Coal, BHP Billiton, said: “The ability to blend iron ore from any of our mines, and the flexibility in the use of all rail and port infrastructure, will be major enablers for our operations. This will improve our operating efficiency and we are pleased to be able to share the gains from this enhancement with the people of Western Australia.”

    www.bhpbilliton.com

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    Wildhorse Energy Granted Second Hungarian UCG Licence

    Tuesday, June 22nd, 2010

    WildHorse Energy Ltd (WHE) is pleased to announce that it has been granted a coal exploration licence over a 47.5 sq km coal deposit in northern Hungary near the town of Dorog, which is approximately 38km NW of Budapest.

    The Izabela UCG Project has been identified as having the potential to add significant value to the Company’s existing UCG coal asset base (located in southern Hungary) due to the potential size of the coal deposit, the features of the coal in relation to its potential suitability for UCG and the proximity of three power stations and a natural gas pipeline.

    WildHorse Managing Director Matt Swinney said, “The recent publication of the scoping study on our Mecsek Hills (UCG) Project confirmed the potential for attractive returns to be generated from the supply of UCG syngas as a feedstock for power stations and for developing into synthetic natural gas (SNG). While the rapid development of our Mecsek Hills Gas Project to commercial production remains our imperative, we are also committed to securing a pipeline of projects for the future. With this strategy we intend to build a leading energy company focussed on UCG in Central Europe to maximise the value from this compelling market opportunity for our shareholders.

    “The Izabela Project appears particularly attractive due to the excellent local infrastructure, including a national natural gas pipeline running through the licence itself, the proximity to three existing power stations and the features of the coal. Based upon our preliminary analysis, both the depth and the features of coal indicate that this coal may be successfully accessed by applying UCG. With our world‐class UCG team we are clearly well placed to realise the potential of this significant asset.”

    Three power stations are located in reasonable proximity to the licence area.  These power stations are owned by Dalkia Energia (the Dorog power station located approximately 2km from the licence area), MVM Zrt (the Tatabanya power station located approximately 25 km from the licence area) and EON (the Gonyu power station which is currently under construction and is approximately 60 km from the licence area. WildHorse has in place an MOU with Dalkia to potentially supply syngas to Dalkia’s Pannon power station from WildHorse’s Mecsek Hills UCG project in southern Hungary. These three power stations represent potential syngas customer prospects.

    The main natural gas distribution network passes through the Izabela licence area. This pipeline represents the potential for natural gas distribution should the Company decide to develop a methanation plant to turn syngas into synthetic natural gas (SNG).   The potential to sell syngas to these power companies or to access this natural gas pipeline has yet to be formally investigated.

    www.wildhorse.com.au

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    Stock Market Analysis: Gold at Record Again; U.S. Markets up for the second week

    Monday, June 21st, 2010

    Stock Market Analysis

    Gold Record Again; U.S. Markets up for the second week

    U.S. stocks ended the day flat but are up for a second week. Across in Europe, Spain successfully auctioned off it’s debt to refresh it’s funds and plans to publish banks’ stress test results in the next few weeks, this lead to improved investor confidence. Our market is likely to open flat with Telstra and Gold stocks to provide support.

    The SPI Futures is above the key level of 4500 the ASX is set to open flat as the SPI closed up 6 points (or 0.1%) at 4,566. Key levels this week are 4450 and 4650. Expect our market to trade flat today with gold stocks again in focus as the precious metals reaches record highs, also expect to see some action in Telstra after progress on the $11 billion NBN deal.

    U.S. Markets

    Miners, and in particular gold miners, lead again the U.S., as the precious metal again closed at new highs. Friday in the U.S. also saw the options and futures contract expire which bought about an increase in trading volumes but market volatility overall decreased. In the U.S. the index of leading indicators, a key gauge of the outlook for growth over the next three to six months, rose 0.4 per cent in May, while other data showed the cost of living dropped and the claims for jobless benefits unexpected increased to the highest level in a month. The data is confirming that even though the U.S. economy will keep expanding in the second half of 2010, it will be with begin with inflation and little job growth.

    The Dow  rose 16 points, or 0.2 per cent, to 10,450 (up 2.2% for week),   while in the broader market the S&P 500 index gained 1 points, or 0.1 per cent, to 1,117 (up 2.4% for week), and the tech-heavy Nasdaq ended flat at 2,310 (up 2.9% for week).

    European Markets

    In Europe markets ended flat but have had positive moves in the past two weeks, as the German market continue to perform well. The primary focus has been on Spain and successful bond issues and plans to publish its banks’ stress test has resulted in improving investor confidence. The International Monetary Fund (IMF) are “very confident” over Spain’s efforts to shore up it banks and reduce its budget gap. Spain is the fourth-largest of the 16 country EU economies behind: Germany, France and Italy.

    In the U.K. the London FTSE 100 index added 3 points, or 0.06 per cent, to 5,251 points (up 1.8% for the week). The German DAX gained 6 points, or 0.1 per cent, to 6,217 points (up 2.2% for week), while in France, the CAC 40 rose 4 points, or 0.1 per cent, to 3,687 points (up 3.9% for the week).

    Asian Markets

    China has made a move on its currency ahead of this weeks’ G20 meeting, by announcing it will be removing its two year yuan peg to the US dollar, not in a one-off revaluation but will be appreciated in an orderly manner. This is potentially good news for our miners because a strengthening in Chinese currency will make our resources cheaper.

    In Asia the Nikkei index of the Tokyo Stock Exchange eased 0.1% to end at 9,995 (up 2.7% for the week). The benchmark Hang Seng Index was up 0.7% at 20,286 (up 2.2% for the week), and China underperformed down 1.8% at 2513 (down 2.2% for the week).

    Oil prices finished the week above US$77 a barrel overnight as U.S.  The benchmark crude NYMEX for July delivery up US$0.39  to settle at US$77.18 a barrel.  Copper prices finished down again but remains around the critical $US3.00 a pound. Copper for July delivery fell 2.1 cents to settle at $US2.882 a pound. Gold closed at a record on concerns about the pace of the U.S. recovery, with August gold jumped  $U9.60 to settle at $US1,258.30 an ounce.

    Key News Drivers Today

    G20 – meeting to be held in Toronto this week.

    IMF – are “very confident” over Spain’s efforts to shore up it banks and reduce its budget gap. Spain is the fourth-largest of the 16 country EU economies behind: Germany, France and Italy.

    YUAN – China to end its twp-year yuan peg to the US dollar.  China has signalled a “more flexible yuan” currency policy, which will allow its currency appreciate in an orderly manner against the US dollar.  The yuan has been pegged at 6.83 against the US dollar since mid-2008.  It will not be a one-off revaluation.

    RSPT Tax – is based on a “flawed” economic theory according to a new study commissioned by the mining industry. They also said the tax will extensively impact job losses and lead to increased volatility in Austalias tax revenue base.

    Markets Overview

    U.S. Markets Up for Second Week; Gold Shines

    SP500: flat at 1,117 – Above 200 day Moving Average  (up 2.4% for week)
    DOW up 0.2% at 10,450 – Above 10,000   (up 2.2% for week)
    NASDAQ: up 0.1% at 2,310  (up 2.9% for week)

    Dollar Index: lower at 85.33 on Higher Euro
    A$ higher at 87.96

    FTSE: flat at 5,250 – Financials Weigh  (up 1.8% for week)
    DAX down 0.1% at 6,217 – Still in Outperforming  (up 3.0% for week)

    CHINA: down 1.8% at 2,513 (down 2.2% for week)
    HSI  up 0.7% at 20,286 (up 2.2% for week)

    Oil: up 0.2% ($77.18)
    BP Faces Off Congress

    Gold: up .9% at ($1,256)
    Commodities Mixed

    SPI: Above key Level 4500 ASX
    SPI up 0.1% at 4,566

    ASX News

    The SPI Futures is above the key level of 4500 the ASX is set to open flat as the SPI closed up 6 points (or 0.1%) at 4,566.   Key levels this week are 4450 and 4650. Expect our market to trade flat today with gold stocks again in focus as the precious metals reaches record highs, also expect to see some action in Telstra after progress on the $11 billion NBN deal.

    AUD – higher at 87.95

    AMU – Amadeus Energy has revealed it’s the target of takeover moves by U.S. companies.

    ALS – Alesco will post a $126 million net loss in FY10 and suspend its dividend until March 2011, due to impairments and one-off expenses.

    ANZ – has signed a memorandum of understanding (MoU) with China Development Bank (CDB) to drive trade and investment  flows between China and NZ.

    BXB – may lose business to its U.S. rival iGPS, as the U.S. company has told investors it is close to
    winning more business from Brambles. This news added to the concern that BXB could miss earnings expectations when it reports in  August. Shares were down 4.8%.

    CFE – An ASX trading ban on two companies connected to controversial Romanian entrepreneur Frank Timis has been overturned on appeal. The ban on International Petroleum (IPO) and Global Iron (GFE) from trading was “infected by error”, an appeal by the companies to the ASX found. CFE could be indirectly affected by the decision.

    GRR – Grange Resources the iron ore miner says a rock slide at its Savage River mine in Tasmania on Thursday is not expected to affect the operation.

    CSD – Consolidated Tin Mines, the junior tin exploere says it will begin talks with potential Chinese customers and joint venture partners for its Mt Garnet project in northern Queensland.

    DJS – management will meet with its biggest shareholder (Ausbil) this week to discuss its plan to defend its brand as a result of last weeks’ surprise resignation of CEO Mark McInnes.

    ELD – in a trading halt as Elders the rural services provider Elders is expected to issue a trading
    and operational update next Tuesday morning.

    GFF – Goodman Fielder says it has raised $350 million worth of unsecured notes in the U.S. to help repay bank debt.

    MAP – has experienced strong growth in passenger numbers at its three Australian and European airports in May, with operations returning to normal after the volcanic ash
    cloud over Europe in April.

    SDL – likley to be in a trading halt as six mining execs including Ken Talbot (formerly of MacArthur Coal) are missing, reared dead, in the Congo, West Africa on missing plane.

    TLS - to receive $11 billion from the government in exchange for sharing its infrastructure with the NBN and migrating customers to the new fibre network.  This is a huge step in resolving issues between the government and Telstra re the NBN roll out.

    Economic Reports out today:

    ABS – reports on international merchandise imports and motor vechiles sales data for May

    KEN – Henry to address the Institue of Chartered Accountants tax reform conference today

    Market volatility will continue near term, some speculative accumulation is underway.

    We the suggest trading strategy is to tighten stops. Be prepared to take profits, remember we are trading into the end of the financial year.  Trade gold and Telstra stocks today.

    Market Summary

    ASX – to open flat
    US & UK/Europe – flat
    US ADRs – Generally Positive!!!…

    BHP up 1.2% & RIO up 0.6%; AWC 2.6%
    ANZ up 2.1% & NAB up 1.4%
    NEM up 2.6%, JHX down 0.9%, NWS down 0.3%

    Commodities Stock Index up 0.7%
    Gold Stocks Index up 1.4%
    Oil Stocks Index up 0.7%

    By Michael Hevern
    Head of Research

    Make the most of the trading tips and market analysis provided in this blog – take advantage of our low brokerage rate of $19.50 and trade shares with Trader Dealer. Also get FREE live ASX Data until December 2010 with our online trading platform Rapid Trader.

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    Benitec Granted US Patent For Hepatitis C

    Saturday, June 19th, 2010

    The Directors of Benitec Limited (BLT) are pleased to announce that US Patent “Multiple promoter expression cassettes for simultaneous delivery of RNAi agents targeted to Hepatitis C virus” has been granted by the United States Patent and Trademark Office (USPTO). The granted claims cover the use of an RNA interference construct (with multiple promoters) to inhibit the level of Hepatitis C virus in animal cells, tissues and organs. Moreover, the USPTO has granted Benitec an additional 805 days patent term in recognition of the delays in examining the patent application. Additional related applications remain pending to extend the scope of protection. Benitec has licensed the rights to use this patent for Hepatitis C exclusively to Tacere Therapeutics, Inc., who recently announced that Pfizer has exercised its option to further develop and commercialise Tacere’s Hepatitis C Virus (HCV) compounds.

    Benitec’s Chief Scientific Officer, Dr Peter French said, “The grant of this patent is an important further recognition of our dominant global position in the transformational DNA- directed RNA interference field and provides increased depth and breadth to our patent portfolio. Benitec’s ddRNAi-related patent estate (solely owned or licensed exclusively for humans from CSIRO) currently comprises over 100 patents and patent applications covering 20 jurisdictions, of which more than 30 are granted, accepted or allowed.”

    Benitec is an Australian biotechnology company focused on licensing its extensive intellectual property portfolio and developing therapeutics to treat serious diseases using its proprietary ddRNAi  technology.

    www.benitec.com

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    Intrapower to Supply New IT Infrastructure to Wilson HTM

    Saturday, June 19th, 2010

    Information technology and communications group IntraPower Limited (IPX), today announced an agreement with Wilson HTM Investment Group (WIG) to migrate their complete IT infrastructure and application delivery to the IntraPower trusted cloud computing platform, Business On-Demand.

    Mr Greg Kennish, Managing Director of IntraPower stated that “Using Business On-Demand, Wilson HTM will no longer require any in-house IT infrastructure or systems, staff will access their Virtual Desktop which includes fully functional Windows, Microsoft Office, and industry-specific applications from anywhere, anytime through IntraPower’s High Availability Network (IHAN).”

    David Groth, CEO of Wilson HTM commented that, “Wilson HTM has grown both organically and by acquisition. IT systems grew in scope and complexity as a result and our business was locked into a recurring cycle of upgrading aged IT infrastructure. The business was facing a significant capital expenditure upgrade and a large consolidation project that would have further absorbed our resources and focus. With the IntraPower Business On- Demand solution we have access to an environment that we would not be able to cost effectively create in-house.

    Under the terms of the agreement, Wilson HTM will be provided with IT services on a Per User Per Month basis providing us with a fixed and predictable cost. Our IT will be less complex and more responsive to the growth and innovation initiatives of the business.” Scott Stewart, CIO of Wilson HTM states “There is a major transformation going on in the IT industry and this is driven by the business requiring greater scale, flexibility and agility. The problem with the traditional IT model is having a large proportion of IT resources and budgets tied up with just keeping the lights on and managing a large scale infrastructure inventory all of which rarely confers any real strategic advantage to the business. Unlike the high cost and high risk outsourcing, hosting and traditional in-house one-to-one infrastructure models, the new trusted cloud computing model is a one to many model where you can pay to access state-of-the-art shared infrastructure, as and when you need it, allowing you to scale up or down quickly when required, all at a much lower cost than trying to do all this yourself”.

    www.intrapower.com.au

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    Brierty Secures $25 million New Contracts

    Saturday, June 19th, 2010

    Civil contractor Brierty Limited (BYL) has secured four new contracts to deliver civil construction services to industrial and residential land development projects in Western Australia. The projects, totalling $25m, have commenced with the revenue contributing to FY11. Three of the new contracts are with Landcorp to fast track the readiness of industrial land in the Pilbara region to meet the needs of businesses servicing the oil and gas and mining sectors. The Pilbara based contracts include Karratha’s Gap Ridge Village Industrial Estate, the Newman Light Industrial Area and Port Hedland’s Light Industrial Area, all locations earmarked for significant future development. The fourth contract is with LWP Property Group for the first stage of Trinity Alkimos, a multi-stage residential development in Perth’s coastal corridor, situated 15km north of Joondalup. Brierty has a proven track record of securing repeat business on multi-stage projects such as this.

    Brierty Managing Director Stuart Crofts said the company has seen a healthy increase in Land Development opportunities in both regional and metropolitan areas across Western Australia, and the business unit delivering these projects has grown from strength to strength on the back of this trend. “Brierty’s recent contract wins are well aligned with the company’s regional expansion plans for the North West of Western Australia,” Mr Crofts said. “As the WA economy responds to the recovery in the resources sector, the demand for residential and industrial land and infrastructure required to support the economy will continue to grow.” The urban and industrial development of the Pilbara will be further enhanced under a ground-breaking State Government initiative aimed at encouraging more people to live in the region. Launched in November last year, the ‘Pilbara Cities’ blueprint will be jointly supported by State, Federal and local governments as well as private sector investment, with the aim of establishing Karratha and Port Hedland as major cities in the North West.

    Brierty provides civil construction and mining services to government and private industry through four lines of business which include Transport Infrastructure; Resources Infrastructure; Land Development; and Mining.

    www.brierty.com.au

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    Stock Market Analysis: Gold Rules

    Friday, June 18th, 2010

    We had mixed leads from overseas markets in our shortened trading week, with most markets trading at, or just above, their 50 day moving average. Gold continues to trade strongly.

    U.S. Markets

    The U.S. continues to get mixed data signals about the strength of its recovery. The latest data was the U.S. Index of leading indicators, a key gauge of the outlook for growth over the next three to six months. This rose 0.4 per cent in May, while other data showed the cost of living dropped and the claims for jobless benefits unexpectedly increased to the highest level in a month. The data is confirming that even though the U.S. economy will keep expanding in the second half of 2010, it will begin with inflation and little job growth. The U.S. markets are trading into their 50 day moving average, with the Dow Jones at 10,434 and the S&P 500 Index at 1,116.

    BP was again a focus overnight with the CEO Tony Hayward being grilled by the Congress in the U.S. BP agreed to suspend their dividend and to put $US20 billion into a fund for the victims of the Gulf Oil Spill. There are incredible amounts of money involved here with the total cost of the spill estimated to be as much as $US100 billion over the next 10 years, and what’s even more incredible is that BP are likely to survive this scenario, highlighting what a profitable business they have.

    European Markets

    In Europe the primary focus has been Spain’s sovereign debt, but concerns appear to be abating as Spain had two successful bond auctions to help pay their debt in the past couple of days. Other positives from Europe include Spain agreeing to allow its banks to undergo “stress testing”, the results of which will be reported in the next couple of weeks; and Greece has been assessed as being on track with the reforms required as part of its rescue package setup to save it from bankruptcy, this is according to a delegation of the International Monetary Fund (IMF), the ECB and EU. This saw the euro trade above $US1.2380.

    In the U.K. the FTSE is at 5,253, Germany and the French CAC are trading above their 50 day moving averages.

    Asian Markets

    During the week the IMF confirmed that Asia’s regional economy is growing so fast that it will rival long-standing economic powers of the U.S. and Europe in the next five years. They went on to say that Asia is set to expand 50 per cent in the next half decade. China was closed most of the week and Japan’s Nikkei index has bounced above 10,000.

    Gold is strong

    Gold continues to outperform  in the commodities market and closed at record highs overnight at $US1,245.60, and crude oil has also been trading higher around $US77.

    Resource super profits tax

    In Australia the resources super profits tax (RSPT) continues to be debated, with BHP, Fortescue and Xstrata all still adament that they have not been consulted by the government about the tax.

    Our View

    Markets are again at key decision levels, as the bulls and the bears are fighting for control. The bulls got the slight upper hand this week by pushing most markets from the 200 to the 50 day moving average levels, but until indices close significantly above these levels, markets will lack positive momentum.

    Traders can use the three day highs and lows as triggers to confirm short term market movements, remember that we’re now trading into the end of the financial year. The ASX 200 is above the key pivot level of 4500 at 4,540, at the confluence of the 50 and 200 day moving averages. Investors will be watching carefully as to how the market reacts here, with the key levels for our index next week being 4650 and 4450.

    By Michael Hevern
    Head of Research

    Make the most of the trading tips and market analysis provided in this blog – take advantage of our low brokerage rate of $19.50 and trade shares with Trader Dealer. Also get FREE live ASX Data until December 2010 with our online trading platform Rapid Trader.

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